Blog Post

Shipping the premium beer farther away

Authors

  • Holger Görg
  • László Halpern
  • Balázs Muraközy
Publication Date

Why are the prices of exports higher for countries that are further away – even when transport costs are excluded? This column suggests that this is partly because firms choose to ship out their best quality goods, just like a brewery with its “export” brands.

Kiel Institute Expert

Info

Key Words

  • international trade
  • product differentiation
  • transport costs

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